Southeastern Asset Management, Holder of 4% of Mattel, Urges Company to Explore a Sale

Southeastern Asset Management, which manages 4% of Mattel’s stock, sent an open letter to the company’s board and other shareholders on Thursday, May 7, 2026, urging it to sell itself. The letter, originally sent to Mattel CEO Ynon Kreiz in mid-March 2026, stated that Mattel should sell to a private equity firm, a toy competitor or a media company.

Southeastern Asset Management said Mattel’s current strategy would make shareholders wait too long for the stock price to reach $30.

“We do not want to wait longer for that to be realized,” the firm stated. ” The investor suggested private equity firms as potential buyers, noting they have expressed interest in Mattel for years. It stated that if Mattel delisted it wouldn’t have to worry about quarterly reports or annual expectations.

41 as of Friday morning, May 8, 2026, after rising 2% from Thursday’s close. The shares have fallen more than 20% in 2026. The pressure from Southeastern Asset Management comes after a difficult period for the toy maker.

Mattel announced it was laying off 65 employees shortly after mid-March 2026. The company has laid off hundreds of employees in the past year and a half as of May 2026. It announced weak holiday sales in 2025, in part due to disappointing Barbie sales.

3 billion last year, down 1% from the year before. Southeastern Asset Management noted that Mattel and Hasbro have been in talks for years. “We believe synergies between the two companies would be material, creating a stronger player in a global industry,” Southeastern Asset Management stated.

The investor also said Mattel has valuable intellectual property that could interest large media companies. The three buyer options are not mutually exclusive and could be combined. Southeastern Asset Management said, “We are grateful for your leadership that stabilized the business during a difficult period.

Mattel stated on Thursday that it appreciates and will consider the perspectives shared by Southeastern and other shareholders. The company stated it will maintain its focus on squeezing more profit from the many famous toys and other intellectual properties it controls.

“Our Board of Directors and management team are committed to acting in the best interests of all Mattel shareholders,” Mattel stated.

Los Angeles Times reported the details of the letter and Mattel’s response.